Which Loan App Has the Lowest Interest Rate in Kenya?

Quick answer: The cheapest mainstream option is usually the government Hustler Fund, at 8% interest per year, which works out far lower than commercial apps. Among M-Pesa products, M-Shwari charges a one-off 9% facility fee for a 30-day loan, and a short Fuliza overdraft can be cheaper still for a few days. Commercial apps like Tala and Branch charge more and their rates change, so always compare the total cost for your exact amount and term rather than a headline rate.

Why lowest rate is hard to compare

Loan apps quote their cost in different ways: some use a one-off facility fee, some a monthly rate, some a daily charge. A 1% daily fee and a 9% one-off fee are not the same thing, and an app that looks cheap over 30 days can be expensive over 7. The only fair comparison is the total amount you will repay on your specific loan size and how long you keep it, which our total cost calculator works out for you.

The genuinely low-cost options

• Hustler Fund charges 8% per year, by far the lowest, though limits start small and grow with use and repayment.
• M-Shwari charges a one-off 9% facility fee (7.5% loan fee plus 1.5% excise) for a 30-day loan, predictable and reasonable if you repay within the term.
• Fuliza can be the cheapest for very short needs: amounts up to KES 1,000 repaid within three days carry no daily fee, only the 1% access fee.

The commercial apps

App lenders such as Tala and Branch are more expensive than the M-Pesa products, and their fees vary by your profile, loan size and term, and change over time. Because of that we do not quote a fixed rate for them here, you should check each app current terms in the app before borrowing. As a rule, the smaller the loan and the longer you keep it, the higher the effective cost, so they suit short, planned borrowing rather than carrying a balance.

How to find your cheapest option

Decide how much you need and for how long, then compare the total repayment, not the advertised rate, across the options open to you. Check whether each lender is licensed by the CBK, because an unlicensed app low rate is not worth the risk. Then repay on time to build a record that earns you cheaper credit later.

Frequently asked questions

Which loan app has the lowest interest rate in Kenya?

The Hustler Fund, at 8% per year, is the lowest-cost mainstream option. Among M-Pesa products M-Shwari charges a one-off 9% fee for 30 days, and a short Fuliza overdraft can be cheaper for a few days. Commercial apps charge more.

Is Hustler Fund cheaper than M-Shwari?

On interest, yes: Hustler Fund 8% a year is lower than M-Shwari one-off 9% per 30-day loan, but Hustler Fund limits are smaller. Which suits you depends on how much you need.

How do I compare loan app rates fairly?

Compare the total amount you will repay for your exact loan size and term, not the headline rate, since apps charge in different ways. A calculator makes this easy.

Are low-rate loan apps safe?

Only if they are licensed by the CBK. An unlicensed app offering a low rate is a red flag; the risk to your data and from collection practices outweighs any saving.